A study on credit risk assessment and credit decision making based on micro, small and medium enterprises

Abstract

Micro, small and medium-sized enterprises (MSMEs) have flourished in recent years and are an important force in the composition of our economy, but they are naturally high in default, banks need to predict the credit risk of each enterprise in order to arrive at a safe, appropriate and efficient credit strategy. This paper mainly studies the data in the input invoices and output invoices of a company obtained by a bank. After screening, classification, and summary, the company’s profit rate and the stability of supply and demand are calculated, and then a regression model is established by combining the company’s reputation level and whether it is in default. This model helps banks predict credit risks and obtain credit strategies.